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Limeytwat

Here is the article from Powersports Business.

Harley-Davidson plans to buy Italian motorcycle manufacturer

Powersports Business
Friday July 11, 2008

Harley-Davidson Inc. has announced its intentions to purchase the MV Agusta Group, a move that shows the manufacturer’s intention to increase its European presence.

Under the agreement, Harley-Davidson will acquire 100 percent of MV Agusta Group shares for approximately 70 million euros ($109 million), which includes the satisfaction of existing bank debt for approximately 45 million euros ($70 million).

Harley-Davidson Inc. plans to continue to operate MV Agusta Group from its headquarters based in Varese, Italy. Following the sale’s closing, Harley said it will appoint a leadership team to include a new managing director and will resume the manufacture of current models. ??

Harley also said current MV Agusta Group Chairman Claudio Castiglioni will continue in a leadership role as chairman and will play a major role in future product development. Design Chief Massimo Tamburini will continue his leadership of MV Agusta Group's world leading sport-bike design studio. ??

Read more about the agreement in the upcoming edition of Powersports Business.


Harley Davidson Press release can be read here:

http://www.harley-davidson.com/wcm/C...8&history=news

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Catenaccio

Sounds like a match made in...well, hell frankly. For MV's sake, I hope money pours in to keep bikes in production.

alfacliff

soounds like harley just pulled their technology level into the twentyth century.
I guess if you cant build a super bike, buy another company.
cliff

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mglemans86

HD Agusta or MV Davidson? Can't picture Ago cruising around the track with leather tassels on his bar ends though

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Catenaccio

Didn't Harley try that years ago with AMF? Aeromacchi? or some such? While great for collectors I doubt the outcome will be what is hoped for, but then I'm cynical.

NinjaRAT

Bleh, there goes the neighborhood.

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Limeytwat

Harleys customer base is fast disapearing here in the USA us old farts are dying off and the V Rod didnt have the desired younger market sales HD needed, too many diehards didnt like the un harley like sound or look of the engine or bike.
now they are bitching because HD have made a Euro only model that at least goes around corners even if it has a slug of an engine.
the Street Triple spanks it on price, handling, reliability etc, as does the Aprilia Shiver.
Harleys sales have stagnated here at home but are on the rise in Europe, old tech chic sells well there.
Sadly Harleys have a narrow focus, the Buell didnt find sales here in the US but has done reasonably well in Europe and Japan with a cult following in both sectors.
A lot of people buy a Harley just to say they own one for the kudos and cool factor. those who ride more than 100 miles a month choose machines far more capable, eg Triumphs and Japs.
Even Buell had to turn to an outside manafacturer to source a modern engine for his "Superbike" and I use the term loosley.
The purchase of MV is possibly a step in the right direction.. but I do hope they dont bugger it up like the various doomed incarnations of Indian motorcycles.
the MV's are exquisite machines in a class of thier own.

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EliziumS3

Hrm... well... I'm torn.

On the one hand, it's Harley. Yech. And that might be enough for some to crap all over this announcement. On the other hand, MV Augusta makes REALLY nice bikes, I think we can agree on that. However, they're hard to find, hard to service, and receive little to no marketing in the US. This is where I see Harley coming in. They're a marketing machine, and I think it's fair to say based on my Triumph experiences with MY lousy dealers here, they (Harley) certainly have a healthy dealer network.

So if they're going to take a "hands-off" approach as this announcement seems to suggest, I could see them focusing on building the brand's recognition in the US and also, of course, infusing MV with a healthy dose of cash to make sure they don't revisit the financial troubles they've had the last decade or so.

If the above is the case, it shouldn't affect MV negatively, but rather allow them to build a stronger presence in the US. That, in my opinion, is not a bad thing. Competition breeds development and growth, and I'll take that in ANY fashion for the motorcycle industry.

Plus, there's a hidden advantage. As the big mass-market motorcycle builder in the US (Polaris/Victory is nice, but I don't think they've passed Harley yet - heh) HD has more clout with politicians here than any Japanese/Euro manufacturer can muster. So the more bikes they "build" and sell (using that term loosely, since it's still an Italian bike) the better the chances that the government doesn't regulate motorcycling to the point that we're all driving 45hp mopeds.

So, I'm sad to see an amazing Italian marque get sold, but I guess if it has to be, at least it's an American company. And it would be nice to be able to buy one and NOT have to go to a crap dealer like my Triumph dealer to get it serviced. You can't swing a bat in Florida without hitting a HD dealer, so the support network should be amazing.

I guess we'll see how this plays out over the next few years, but given the history of both Ducati and MV of skirting bankruptcy or some other financial woes every decade or so, I'm thinking this may be a really beneficial relationship for both Harley and MV.

One question that should be brought up is this: Will this have a negative impact on Buell? I mean, they try and make sportbikes, but let's face it. They suck. You, me, and the motorcycle press all agree on this. Either they're going to share some technology, and Buell will make better bikes, or MV will become the sportbikes that Harley sells and Buell will slowly fade into non-existence. That, perhaps, will be the most interesting thing to watch out of all of this.

Pablo

Yet, the question remains: Why?
The only things that the two companies have in common is that they are both loosing money and they both make over-priced bikes.
But, whatever the outcome, rest assured it will be expensive!

smartin108

Cool! Now we will be able to buy fingerless carbon fiber gloves for our Brutale with floorboards.